Brazil’s state-owned oil giant, Petrobras, is staging a return to Nigeria’s oil sector, targeting deepwater acreage as part of a broader strategy to rebuild its reserves and diversify its portfolio.

 This move marks a significant shift, as Petrobras had exited Nigeria over a decade ago to focus on its domestic projects.

Petrobras’ renewed interest in Nigeria comes amid broader efforts to expand its footprint in Africa.

 In February 2025, the company announced plans to acquire stakes in African oil assets, including projects in Angola, Namibia, and South Africa. 

This initiative aims to bolster its oil and gas reserves ahead of anticipated production declines after 2030. 

The company is reportedly in talks with major oil firms like ExxonMobil, Shell, and TotalEnergies to potentially acquire shares in their African projects.

Petrobras’ return to Nigeria aligns with a broader strategy to tap into new frontiers after re-entering the African market in 2023 in December of that year, the company acquired three exploration blocks in São Tomé and Príncipe, signaling a fresh push into the continent three years after selling its Nigerian assets for $1.5 billion.

Nigeria, the largest oil producer in Africa, has been seeking to attract foreign investment to revitalize its oil sector.

 The Nigerian government has introduced a range of tax incentives and is promoting investment opportunities at international fora, including the upcoming BRICS summit and COP30, both set to be hosted by Brazil this year.

This renewed engagement between Petrobras and Nigeria also reflects strengthening bilateral ties, with both countries aiming to deepen collaboration across energy, health, culture, and agriculture sectors.

For Petrobras, this return to Nigeria’s deepwater fields represents a calculated move to diversify its revenue streams and stabilize production as global energy markets undergo rapid shifts. 

The company’s strategy includes not only traditional oil and gas but also a focus on more sustainable energy sources, aligning with global trends toward energy transition.

If successful, Petrobras’ re-entry into Nigeria could provide a significant boost to the West African nation’s struggling oil sector, potentially bringing in fresh capital, advanced technologies, and job opportunities.